LIC Online Term Plan e-Term – Review

LIC e-Term

Finally LIC joins the online insurance club of India. Yes LIC is back with Online Term Plan e-Term. LIC e-Term is online term plan which provides financial protection to the insured’s family in case of his/her unfortunate demise. Let’s review e-Term.

LIC e-Term Features

  • This plan is available through online mode only and no intermediaries will be involved.
  • e-Term is pure term plan
  • Two different categories are available under this plan.

1. Aggregate category – Sum assured up to Rs. 49 Lacs  or Sum assured more than Rs.50 Lac

This category is for Smoker

2. Non Smoker category – Sum assured more than Rs.50 Lac

As name suggest this category is for Non-Smoker LIC e-Term Catagory

  • Differential premium rates for Smoker/Non-Smoker lives

Eligibility:-

  • Minimum Sum Assured : Rs. 25 Lacs for Aggregate category and Rs 50 lacs for Non-smoker category
  • Maximum Sum Assured : No limit
  • Minimum age at entry : 18 years (completed)
  • Maximum age at entry : 60 years (nearest birthday)
  • Maximum cover ceasing age : 75 years (nearest birthday)
  • Minimum policy term : 10 years
  • Maximum policy term : 35 years
  • Mode of Payment: Annual Payment
  • Eligible life: Proposal on own life only

Benefits:-

Death Benefit:- In case of unfortunate death of the Life Assured during the policy term Sum Assured shall be payable.

Maturity Benefit:- On survival to the end of the policy term, nothing shall be payable.

Premium Comparison:-

The Yearly premium for LIC online term plan for 50 lacs sum assured is Rs 8,202 (for 30 yrs old male and for 30 yrs term) In below chart I tried to compare LIC’s online plan with other online term plan available in market. Interestingly compare to other private insurance term plan LIC e-Term plan is costlier. Age 30 years Term 30 Years, Risk cover 50 Lacs. LIC e-Term Premium Should I buy this Policy?

Cost:-

If you look at only cost LIC e-Term is costly affair. We have better other online term plan in market like SBI life e-shield or HDFC click 2 Protect. Compare to existing offline term plans of LIC – Jeevan Amulya 2 this plan looks cheaper.

Claim Settlement Ratio:-

LIC offers highest claim settlement ratio last year LIC claim settlement ratio was 97.3%. Claim settlement ratio of private insurance companies like HDFC, SBI, ICICI is around 90%. So from claim settlement point of view e-Term is better.

If you have not purchased any term plan and you have apprehension in purchasing term plan from private insurance company LIC e-Term is for you.

Other Important Points:-

  • No accidental benefit rider.
  • Maximum age is up to 75 Yrs.
  • No additional riders.
  • Medical test is must.
  • We have no experience about service level of LIC in terms of Online term plan.

You can buy Online LIC e-Term plan here.

Are you buying the LIC e-Term ? How did you find this review ?

Article by Raviraj

Hi, I am Raviraj. I am passionate about money matters and finance. I have 10 years of rich experience in the field of financial planning, Investments & Insurance. I have written 850+ article on this blog. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

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